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If you do decide to proceed, buy the assets, not the "business =stock", i.e. if they are a corp don't buy the stock, buy the name, assets, lease etc... also, if you do it as an asset sale *consult an attorney to follow all the rules for your state* is very important. Assets sales are safer has been my experience as fewer things come back to haunt you.

If you do decide to proceed, buy the assets, not the "business =stock", i.e. if they are a corp don't buy the stock, buy the name, assets, lease etc... also, if you do it as an asset sale *consult an attorney to follow all the rules for your state* is very important. Assets sales are safer has been my experience as fewer things come back to haunt you.

Good point! I would also add that there can also be different taxation consequences between an asset sale and share sale, depending on where you do business.

watch a few episodes of Restaurant Impossible (yeah, yeah, it's not all real). A common underlying theme is the owners bought the place for $$$$ even though the land is leased. The $$$ went for 'the recipes' and the 'stock'... Some very sound advice was given above -- pay only for the assets, and make sure the lease has a lot of years left. The recipes, management team, etc. add very little value.

Not being in the business I would say walk away. And also listen to what Kny said. There is always something that needs bought, broken, on last legs in every restaurant out there. Most of the time the managers take care of that, but it is also your capital that they are working with. I would also recommend doing a follow of someone in the business and see how hands on you have to be, even as a owner.

Read Restaurant Succes by the Numbers: A Money Guys Guide To Owning Your Own Restaurant. Hire EXPERIENCED professionals, accountant, GM, Chef. Go work in a well run restaurant for free for a few months, if you are still interested you might think about doing some homework and going through with it. But be very sure that you are willing to have no life other than work for a long time.

Once again, thank you so much for your input!!
Some of the detailed checklist is really helpful.
I felt that this is a rare opport****y in that the owner has a personal matter forcing him to sell his business and wants to move to different state.
It is not that he has an issue of running the restaurant.
I don't know what I can find out when I meet the owner of the restaurant over the weekend but I will report back after and seek your advise again.

Watch all of the "Kitchen Nightmares" episodes on YouTube (the awesome BBC version, not the terrible US imitation) before you sign on the dotted line. You see these poor people who have invested everything they have into a business and just can't make it work. I would definitely want to get some experience working in a kitchen (or managing a restaurant) before buying one, and even then! Risky, risky business. I will be interested to hear what you decide to do. Good luck!